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Book Value

   Also found in: Dictionary/thesaurus, Financial, Acronyms, Wikipedia 0.02 sec.

The current value of an asset. The book value of an asset at any time is its cost minus its accumulated depreciation. (Depreciation reflects the decrease in the useful life of an asset due to use of the asset.) Companies use book value to determine the point at which they have recovered the cost of an asset.

The net asset value of a company's Securities. This is calculated by subtracting from the company's total assets the following items: intangible assets (such as goodwill), current liabilities, and long-term liabilities and Equity issues. This figure, divided by the total number of bonds or of shares of stock, is the book value per bond or per share of stock.

The calculation of book value is important in determining the value of a company that is being liquidated. For example, if a corporation has 100,000 shares of stock issued and outstanding and its assets total $5 million and its intangible assets and all liabilities total $1.6 million, its net asset value is $3.4 million and its book value per share is $34.

book value n. a determination of the value of a corporation's stock by adding up the stated value of corporate assets as shown on the books (records) of a corporation and deducting all the liabilities (debts) of the corporation. This may not be the true value of the corporation or its shares since the assets may be under- or over-valued.
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11, 2009 (CENS)--To ward off possible side effect from the opening up of cross-Taiwan Strait financial markets, the Financial Supervisory Commission (FSC) will change the calculation base for the ceiling of credit extension by foreign bank branches in Taiwan to the book value of the branches, from that of the parent banks originally, which will greatly restrict foreign bank branches credit-extension volume on the island.
FSC to restrict credit-extension ceiling by foreign bank branches by The Taiwan Economic News
The book value of inventory should come from a tax return, balance sheet, or trial balance.
Do Your Own Business Valuation ? Part 8 Asset-Based Methods by David Coffman / Business community
We estimate q as the ratio of the market value of the firm's assets to the book value of the firm's assets, where the market value of assets equals the book value of assets minus the book value of common equity plus the market value of common equity.
The impact of investment opportunities and free cash flow on ... by Chen, Sheng-Syan; Chou, Robin K.; Chou, Shu-Fen / Financial Management
 
 
 
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